New Zealand Prime Minister Christopher Luxon announced on Monday, the 7th of April, that it will increase defence spending by nine billion New Zealand dollars (five billion US dollars) over the next four years and plans to almost double spending to 2% of GDP over the next eight years at a time when tensions are rising rapidly around the world, according to Reuters.
Prime Minister Luxon called for increased defence spending to ensure prosperity.
“New Zealand and our allies and partners around the world are no longer in a benign environment,”
he said at a press conference launching the Defence Capabilities Plan.
“The focus is on the economic importance of this country. However, prosperity is not possible without security and defence is one of the most important components of this situation.”
The Defence Capabilities Plan provides new funding of nine billion New Zealand dollars over the next four years to boost defence capabilities. This is in addition to baseline spending that will be announced in May.
The new spending will significantly increase Defence Force spending, which is just under five billion New Zealand dollars in 2024/2025.
New Zealand’s first National Security Review in 2023 called for increased military spending and stronger ties with Indo-Pacific countries to address climate change and strategic competition between the West and China and Russia.
The New Zealand Defence Force has faced systematic underspending in recent decades, currently accounting for just over 1% of GDP.
In recent years, three ships have been decommissioned amid a number of attrition and plans for a new Southern Ocean patrol vessel have been also halted. However, in the last year fewer people have left the service.
Over the next four years, the plan foresees that the defence forces will invest in projects such as increasing strike capability, acquiring unmanned aerial systems, replacing helicopters and extending the service life of frigates.
It also plans to replace Boeing 757 aircraft after some unfortunate breakdowns which have stranded officials on overseas trips.